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What Institutions help immigrants Integrate?

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  • Peter Huber

Abstract

I analyse the importance of national migration policy and labour market institutions for immigrants’ labour market integration. Results indicate that the sending country structure of immigrants to a country, its ethnic diversity and its wage bargaining institutions as well as product market regulation are the most important national institutions impacting immigrants’ labour market integration. Variables related to the generosity of the welfare state and tax progressivity are, by contrast, only important in selecting migrants with high employment probabilities and migration policy variables remain unimportant altogether. Countries with more centralized wage bargaining, stricter product market regulation and countries with a higher union density, have worse labour market outcomes for their immigrants relative to natives even after controlling for compositional effects. Immigrants with better chances for labour market integration on account of observable characteristics self-select to countries with more centralised wage bargaining and higher minimum wages but a lower coverage rate by collective agreements. Liberal product market regulation, less centralised wage bargaining and ensuring inclusive trade unions thus assist the integration of immigrants in host countries’ labour markets most strongly.

Suggested Citation

  • Peter Huber, 2015. "What Institutions help immigrants Integrate?," WWWforEurope Working Papers series 77, WWWforEurope.
  • Handle: RePEc:feu:wfewop:y:2015:m:1:d:0:i:77
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Jesus Crespo Cuaresma & Peter Huber & Anna Raggl, 2015. "Reaping the Benefits of Migration in an Ageing Europe," WWWforEurope Policy Brief series 7, WWWforEurope.
    2. repec:wfo:wstudy:58161 is not listed on IDEAS
    3. repec:wfo:wstudy:57886 is not listed on IDEAS
    4. Jesus Crespo Cuaresma & Peter Huber & Doris A. Oberdabernig & Anna Raggl, 2015. "Migration in an ageing Europe: What are the challenges?," WWWforEurope Working Papers series 79, WWWforEurope.
    5. repec:cog:socinc:v:6:y:2018:i:3:p:64-77 is not listed on IDEAS

    More about this item

    Keywords

    Immigrant Integration; Migration Policy; Labour Market Institutions;

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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